Which factors affect the willingness of consumers to adopt renewable energies?

Abstract

This study presents insights into the determinants of consumers' willingness to adopt renewable energies in the residential sector. The empirical analysis is based on the estimation of binary probit regression models. Empirical results suggest that middle-aged and highly educated people are probably more willing to adopt renewable energy sources in their home. In general, income positively affects consumers' acceptance of renewable energy projects in the residential sector. However, the results suggest that marital status and gender are not statistically significant factors in the willingness to adopt renewable energies. A tax deduction is estimated to be the most effective financial policy measure to promote consumers' acceptance of renewable energies in the residential sector, more so than an energy subsidy. Our analysis is focused on intention because we expect that those people willing to adopt renewable energy sources in their residence are a potentially relevant market segment for the application of renewable energies.